The Hindu Business Line : `Japan-India economic ties not fully tapped'

Pointing out that Japan-India economic relations were now at a new high, Mr Yoshikazu Takeuchi, Consul General of Japan in Kolkata, said here on Thursday that the full potential of such ties were yet to be exploited. The two-way trade between the two nations in 2005 at $6.8 billion is said to be incommensurate with the built-in potential.

Speaking at an interactive session on "Indo-Japan Business Opportunities: Focus West Bengal", organised by the Bharat Chamber of Commerce, Mr Takeuchi said Japanese FDI into India was expected to be around $1.8 billion in the three years ending 2007, with an annual average of around $ 600 million. India, he said, was also one of the largest recipients of Japanese Overseas Development Assistance (ODA) at ¥ 2,190 billion till 2003-04.

Bilateral Trade

Stressing on Japan-India Global Partnership, as enumerated by both the Prime Minister, Mr Koizum and the Prime Minister, Dr Manmohan Singh, he said there was need to raise bilateral trade to much higher levels. India now ranks 26th in terms of Japan's global exports and 28th in terms of imports. The number of Japanese companies has gone up from 231 in August 2003 to 328 in January 2006.

Among India's top export items to Japan is gem & jewellery, accounting for nearly 75 per cent, followed by marine products, iron ore, cotton yarn and software. The Consul said many Japanese SMEs were now keen to enter the fast growing Indian market. He suggested that Indian SMEs keen on forming JVs with their counterparts in Japan may approach JETRO (Japan External Trade Organisation), which has offices in New Delhi, Mumbai and Bangalore, for assistance.

According to Mr Santosh Rungta, President of Bharat Chamber of Commerce, Japan was the fourth largest FDI contributor to India, during 1991-2004, accounting for 8 per cent of India's total technical collaboration with foreign partners.

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